Argentine President Javier Milei is currently facing threats as opposition parties push for his impeachment following his promotion of cryptocurrency.
The digital asset’s value skyrocketed before abruptly crashing, leading to substantial financial losses for thousands of investors.
The controversy has sparked a political firestorm in Argentina, with critics accusing Milei of endorsing a fraudulent scheme—an allegation the presidential office firmly denies.
The uproar started when Milei shared a post on his X account, where he has over 3.8 million followers. “This private initiative will focus on fostering Argentina’s economic expansion,” he wrote, linking to the $LIBRA cryptocurrency project.
However, within hours, Milei removed the post and issued another statement clarifying that he had no affiliation with the initiative. “I was not aware of the specifics of the project and, upon learning more, I decided to stop promoting it,” he stated.
Milei’s team responded to CNN’s inquiry, calling the situation a misunderstanding. Meanwhile, CNN has contacted Argentina’s National Securities Commission to determine whether regulatory action will be taken.
On Saturday, the presidency announced an official probe into the matter.
“President Javier Milei has decided to involve the Anti-Corruption Office immediately to establish whether any government official, including the president himself, engaged in improper conduct,” the statement read.
At the time of its launch, a handful of digital wallets controlled most of the cryptocurrency, and its initial value was nearly zero. Following Milei’s endorsement, the price surged to nearly $5 before plunging to mere cents within three hours, according to data from trading platforms.
Pablo Sabbatella, a specialist in crypto security, told CNN that Milei had shared a “smart contract”—a type of coded agreement—linked to the Solana blockchain, a platform that has gained popularity among investors seeking high-risk, volatile assets.
“The first thing I noticed was that the website had been registered just a day earlier (Friday), which is a common trait of fraudulent schemes,” Sabbatella explained. He also pointed out that the cryptocurrency token was created mere minutes before Milei’s endorsement.
“The major stakeholders—those holding large amounts of the asset—bought in at virtually nothing. Then, as the price soared, they sold. This is known as a ‘pump and dump’ scheme, and that’s exactly what transpired,” Sabbatella noted.
He revealed that some accounts that purchased the token at minimal prices earned over $4 million in two hours, with one account profiting as much as $87 million from the sale.
Argentina’s political opposition has condemned the president’s actions. The Union for the Homeland coalition announced on Saturday that it would proceed with an impeachment request against Milei.
Sources close to Milei dismissed the impeachment calls, with Congressman Diego Santilli labeling them an attempt to “topple” the president.
Security Minister Patricia Bullrich defended Milei in an interview with Radio Rivadavia, stating, “The president has the right to express himself freely and discuss topics of his choosing.” She further compared his online endorsement to a president visiting a factory, saying, “It does not mean he is lobbying for that business.”
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